Home ›› 18 Apr 2023 ›› World Biz
Shares in troubled UK online retailer The Hut Group jumped Monday after revealing an informal takeover approach from US private equity firm Apollo Global Management.
THG, which sells cosmetic and nutrition products, said “it is currently in receipt of a highly preliminary and non-binding indicative proposal from Apollo Global Management Inc”.
The news, issued in response to media speculation, sent THG’s share price leaping 35.4 per cent to 89.51 pence in afternoon deals.
The announcement comes two months after THG issued a profit warning and launched a strategic review into loss-making parts of the business.
Despite Monday’s gains, the share price remains more than 80-per cent below its level when the group floated in London three years ago.
The stock was also hit last year after it rejected a £2.1-billion takeover approach from an investment consortium led by Belerion and King Street Capital Management.
THG, whose portfolio includes beauty website Lookfantastic and nutrition brand Myprotein, is based in Manchester in northwestern England and was founded in 2004.
The group has grown via acquisitions but its valuation has also tumbled over the last two years on rampant cost inflation, while it has faced scrutiny over its corporate governance.
